5 Things to Know About the U.S. Bank Split Credit Card

The U.S. Bank Split World Mastercard functions more like a buy now, pay later plan than a traditional credit card. It allows cardholders to split their purchases into equal payments across three, six or 12 months.

Beyond its flexible repayment feature, the $0-annual-fee card doesn't offer much in the way of rewards or benefits. And there are more rewarding credit cards from major issuers, including U.S. Bank itself, that offer similar repayment options.

Here’s what to know about the U.S. Bank Split credit card.

» MORE: Buy now, pay later vs. credit cards

1. It doesn't work like a regular credit card

Typically, with traditional credit cards, balances accrue until they’re paid off. The U.S. Bank Split card works differently.

When cardholders make a purchase of $100 or more with it, that expense is automatically placed into a three-month interest-free payment plan, allowing repayment over three billing cycles with no fees.

Additionally, cardholders have the option to extend their payment plans to six or 12 months, each of which charges a fixed monthly fee rather than interest. So, for instance, if you make a $250 purchase and you don’t think you can pay it back over the automatic three-month repayment period, you can log into your U.S. Bank card account before the end of the billing cycle and choose a six- or 12-month plan instead.

Again, you’ll be charged a fixed fee, every month, for the duration of those longer plans. You’ll be able to see what your fixed fee is once you extend your plan.

Note that purchases under $100 are combined at the end of the billing cycle into a single three-month payment plan that cannot be extended. Plus, while users can’t cancel or shorten their repayment plans, they can pay them off early.

2. You won’t earn rewards

As established above, the U.S. Bank Split World Mastercard doesn't operate like traditional credit cards do. To that point, it doesn't earn rewards.

Rewards cards — those that earn cash back, miles or points — are valuable because they can give you money back on your spending and offer long-term benefits for cardholding. See NerdWallet’s list of best rewards credit cards for options.

3. It’s lacking additional benefits, too

Apart from its split payment option, the U.S. Bank Split World Mastercard doesn't offer much in the way of benefits or perks. For example, it doesn't come with a welcome bonus for new applicants.

Welcome offers are standard on many traditional rewards cards and can earn new applicants hundreds of dollars in rewards. Here’s a list of NerdWallet’s best credit card welcome bonuses.

4. You can get preapproved

Applicants can see whether they’re preapproved for the U.S. Bank Split World Mastercard, which means they can check to see if they might qualify for the card, without a hard inquiry and subsequent impact to their credit scores.

Like most preapproval processes, once you formally apply, there is then a hard pull on your credit, which can temporarily affect credit scores.

5. There are better alternative options

Various major issuers offer credit cards with payment plan options. These cards might be more valuable than the U.S. Bank Split World Mastercard because many of them also offer rewards and benefits.

For instance, Chase's "Pay Over Time" feature allows eligible customers pay off purchases of $100 or more in equal monthly installments for a fee instead of interest.

In fact, U.S. Bank itself features an ExtendPay program on many of its other cards, which is similar to the Split card's payment option. With ExtendPay, eligible U.S. Bank credit cardholders can divide purchases of $100 or more across three- to 24-month periods for no interest, only a fixed monthly fee.